What kind of TA pattern is this?

[jdenhaan]

The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?

 

[Whiskers]

The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?

View attachment 55416

For me the weekly candlestick chart is probably a better picture.

More like a triangle. Break below and pushing against Bollinger band. The bottom of the triangle is also medium term trend. MACD turning down... all seems bearish for recent weeks at a quick glance. I'd be watching for a move above Bollinger as indication of turnaround or below for further weakness.

http://www.investopedia.com/terms/s/symmetricaltriangle.asp

 

[pixel]

The thread title says it all... This is for STW communications (ASX:SGN). Is this a downward pointing triangle that warns us of bearish potential or a downward sloping wedge that points at bullish potential? Is this a pattern at all?

I would also use the weekly and take note of the Bearish Divergence of (MACD) Momentum, where momentum has completely broken down sub-zero.



I also use a lesser-known observation, the "4th attempt breakout" - in this case break-DOWN - as described with examples on http://bartrade.biz/trades/4th.htm

The Daily Trinity chart underpins that assessment. (The arrows mark the points where trades have broken above/below Trinity's 3-day Volatility Envelope.)

 

[tech/a]

I personally think your taking a part section of the predominant pattern which is clearly a rectangle.
From Mid July.

MACD is useless as it will and is whipsawing in the range.
Bollinger is just recording a narrowing of the Standard deviations of the 20 day M/A which would be expected
in a range.

To analyse look at price action at the top and bottom of the rectangle range for clues on which way it is likely to break out.(Volume and range)

 

[Gringotts Bank]

These are automatic trendlines. I zoomed the period in and out to find the best fit and this is what is gave me. Looks similar to yours.

Breaking this lower trendline [the one it's sitting on now] could be important because it has lots of touches.

 

[CanOz]

I personally think your taking a part section of the predominant pattern which is clearly a rectangle.
From Mid July.

MACD is useless as it will and is whipsawing in the range.
Bollinger is just recording a narrowing of the Standard deviations of the 20 day M/A which would be expected
in a range.

To analyse look at price action at the top and bottom of the rectangle range for clues on which way it is likely to break out.(Volume and range)

Agree that this is a bracket, its just a big consolidation period and the key levels to watch, as Tech said are the highs and lows of the bracket....